13. Employee Benefit Obligations


	September 30,		December 31,
($ in millions)	2016		2015

Underfunded defined benefit pension liabilities	$	968	$	706
Less current portion		(34)		(18)
Long-term defined benefit pension liabilities		934		688
Retiree medical and other postemployment benefits		247		148
Deferred compensation plans		279		281
Other		48		30
	$	1,508	$	1,147

Components of net periodic benefit cost associated with the company’s defined benefit pension plans were:


	Three Months Ended September 30,
	2016						2015
($ in millions)	U.S.		Foreign		Total		U.S.		Foreign		Total

Ball-sponsored plans:
Service cost	$	17	$	4	$	21	$	13	$	4	$	17
Interest cost		33		25		58		14		5		19
Expected return on plan assets		(35)		(31)		(66)		(20)		(5)		(25)
Amortization of prior service cost		—		1		1		—		—		—
Recognized net actuarial loss		8		1		9		10		2		12
Settlements/curtailments/special termination		—		—		—		5		—		5
Total net periodic benefit cost	$	23	$	—	$	23	$	22	$	6	$	28


	Nine Months Ended September 30,
	2016							2015
($ in millions)	U.S.		Foreign			Total		U.S.		Foreign		Total

Ball-sponsored plans:
Service cost	$	41	$	10		$	51	$	39	$	11	$	50
Interest cost		63		34			97		43		14		57
Expected return on plan assets		(71)		(40)			(111)		(59)		(15)		(74)
Amortization of prior service cost		(1)		—			(1)		(1)		—		(1)
Recognized net actuarial loss		24		4			28		29		7		36
Settlements/curtailments/special termination		—		80	(a)		80		5		—		5
Net periodic benefit cost for
Ball-sponsored plans		56		88			144		56		17		73
Net periodic benefit cost for multi-employer plans		1		—			1		1		—		1
Total net periodic benefit cost	$	57	$	88		$	145	$	57	$	17	$	74

(a)

Amount relates to plans sold in the Divestment Business.

Contributions to the company’s defined benefit pension plans, not including the unfunded German plans, were $246 million in the first nine months of 2016 and insignificant in the first nine months of 2015, and are expected to be in the range of $250 million for the full year of 2016. This estimate may change based on any changes to the U.S. Pension Protection Act and actual plan asset performance, among other factors. Included in the contributions during the first nine months of 2016, were contributions to acquired Rexam defined benefit pension plans including a U.K. escrow payment of $171 million. Payments to participants in the unfunded plans were $18 million in the first nine months of 2016 and are expected to be in the range of $25 million for the full year of 2016.

Ball acquired 11 pension plans and 2 retiree medical plans in the Rexam acquisition, and divested plans in certain foreign countries. Rexam agreed to establish and fund an escrow cash account in the amount of $171 million on behalf of the acquired Rexam U.K. pension plan which was contributed to the U.K. pension plan in July, 2016.